Locked Our New 30 year Fixed Rate Mortgage at 4.875%
It took 3 tries, but my wife and I finally locked into a 30 year fixed rate mortgage at 4.875% with no fees or points. We are borrowing $241k at this rate. I decided to borrow as much as possible given how much lower this rate is compared to our other 3 mortgages. I would have borrowed more if we could have and used it to pay down one of our other mortgages.
We first locked in back in the end of November at 5.63% with no fees/points. Rates ofcourse continued to fallover the next month and we then applied and locked into a 4.75% with .5% orgination fee/no point loan. Finally we moved 1 more time and applied for a 4.875% with no fees/points where the lender also agreed to reduced lender fees.
How Do You Withdraw a Loan Application?
Well it turns out it is fairly easy. On the first loan application we simply faxed in a letter that read "Please withrdaw our loan application". All we had to pay was $350 for the appraisal that had already been performed and we were able to reuse the appraisal for the final loan. The second loan application I simplied called then and and requested they cancel my loan application.
I had always been under the impression that once you actaully filled out and submitted the application that you were locked into that lender and it would be difficult (ie expensive) to walk away. Turns out it was very easy for us to move around and take advantage of dropping interest rates. We were able to shave off about $100/mo off our future mortgage payment by doing so.
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